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Full text of "Masonville city audit"

OFFICE OF AUDITOR OF STATE 

STATE OF IOWA 



Telephone (515) 281-5834 Facsimile (515) 242-6134 



State Capitol Building 
Des Moines, Iowa 50319-0004 



David A. Vaudt, CPA 
Auditor of State 



NEWS RELEASE 



Contact: David A. Vaudt 
515/281-5835 



or Tami Kusian 



FOR RELEASE 



February 12, 2013, 10:00 a.m. 



515/281-5834 



Auditor of State David A. Vaudt today released a report on a special investigation of the City 
of Masonville for the period of March 18, 2002 to November 30, 2011. The special investigation 
was requested by City officials after the former City Clerk admitted she had issued unauthorized 
checks to herself. 

Vaudt reported the special investigation identified $84,774.88 of improper and unsupported 
disbursements. The improper disbursements identified include $79,557.33 of unauthorized 
payments to Christine King, the former City Clerk, for payroll, reimbursements and mileage. The 
improper disbursements also include $1,867.80 of payments for FICA and IPERS on the 
unauthorized payroll and $1,560.00 of late fees, penalties and fines paid to the IRS. The 
$1,200.42 of unsupported disbursements identified includes 2 payments to Best Buy. 

Vaudt also reported a number of payments were made to the Mayor for various services 
performed for the City, such as mowing, snow plowing and acting as the City's sewer operator. 
These payments did not comply with requirements established by section 372.13(8) of the Code of 
Iowa. In addition, meeting minutes did not include the authorized amount of pay for City Council 
members. 

The report includes recommendations to strengthen the City's internal controls, such as 
improvements to segregation of duties, reconciling utility billings with collections and delinquent 
accounts, ensuring all disbursements are properly supported and developing a written credit card 
policy. 

Copies of the report have been filed with the Delaware County Sheriff's Office, the Division 
of Criminal Investigation, the Delaware County Attorney's Office and the Attorney General's Office. 
A copy of the report is available for review in the Office of Auditor of State and on the Auditor of 
State's web site at: http://auditor.iowa.gov/specials/ 1 122-0264-BE00.pdf . 



# # # 



REPORT ON SPECIAL INVESTIGATION 
OF THE 
CITY OF MASONVILLE 

FOR THE PERIOD 
MARCH 18, 2002 THROUGH NOVEMBER 30, 2011 



1122-0264-BE00 



Table of Contents 



Page 



Auditor of State's Report 3-4 
Investigative Summary: 

Background Information 5-6 

Detailed Findings 6-17 

Recommended Control Procedures 17-19 

Exhibits: Exhibit 

Summary of Findings A 21 

Checks Issued to Christine (Boudreau) King B 23-35 

IPERS Contributions on Unauthorized Payroll C 36-37 

FICA Contributions on Unauthorized Payroll D 38-39 

Credit Card Purchases E 40-41 

Selected Payments F 42-43 

Comparison of Reported Balances to Bank Balances G 44-45 

Staff 46 



2 



OFFICE OF AUDITOR OF STATE 

STATE OF IOWA 

State Capitol Building 
Des Moines, Iowa 50319-0004 
Telephone (515) 281-5834 Facsimile (515) 242-6134 



David A. Vaudt, CPA 
Auditor of State 



Auditor of State's Report 



To the Honorable Mayor and 
Members of the City Council: 

As a result of the alleged improprieties regarding certain financial transactions and at 
your request, we conducted a special investigation of the City of Masonville. We have applied 
certain tests and procedures to selected financial transactions of the City for the period 
March 18, 2002 through November 30, 2011. Based on our review of relevant information and 
discussions with City officials, we performed the following procedures: 

(1) Evaluated internal controls to determine whether adequate policies and 
procedures were in place and operating effectively. 

(2) Reviewed activity in bank accounts held by the City to identify any unusual 
activity. 

(3) Examined deposits to the City's bank accounts to determine the source, purpose 
and propriety of each deposit and determine deposits were made intact. 

(4) Scanned all disbursements from the City's bank accounts. We also examined 
documentation for certain disbursements to determine whether they were 
appropriate, properly approved and properly supported. 

(5) Obtained and reviewed statements for the City's credit card account and activity 
in charge accounts established with local vendors in the City's name and the 
related invoices to determine the propriety of activity. 

(6) Examined payroll disbursements to all City employees and officials to determine if 
the amount and frequency of payments were appropriate. 

(7) Examined reimbursements to City employees and officials to determine if 
payments were properly approved and supported. 

(8) Examined utility billing and collection records to determine if collections were 
properly accounted for and deposited. 

(9) Reviewed reports prepared by Christine King, the former City Clerk, to determine 
if financial information was accurately reported to the City Council. 

(10) Reviewed a contract established with the United States Department of Agriculture 
to determine whether the City complied with all the terms. 

(11) Obtained and reviewed Ms. King's personal bank statements to identify the source 
of certain deposits. 

These procedures identified $84,774.88 of improper and unsupported disbursements. 
Our detailed findings and recommendations are presented in the Investigative Summary and 
Exhibits A through G of this report. 



3 



The procedures described above do not constitute an audit of financial statements 
conducted in accordance with U. S. generally accepted auditing standards. Had we performed 
additional procedures, or had we performed an audit of financial statements of the City of 
Mason ville, other matters might have come to our attention that would have been reported to 
you. 

Copies of this report have been filed with the Delaware County Sheriff's Office, the Division 
of Criminal Investigation, the Delaware County Attorney's Office and the Attorney General's Office. 

We would like to acknowledge the assistance extended to us by personnel of the City of 
Mason ville and the Delaware County Sheriffs Office during the course of our investigation. 




DAVID A. VAUDT, CPA 
Auditor of State 




December 17, 2012 



4 



City of Masonville 
Investigative Summary 

Background Information 

The City of Masonville is located in Delaware County and has a population of approximately 130. 
The City employs a City Clerk and a wastewater operator. In addition, City officials assist with 
snow removal, mowing and meter reading. Employees are paid monthly and City officials are paid 
quarterly. Christine (Boudreau) King was hired as the City Clerk in 2002. As the City Clerk, 
Ms. King was responsible for: 

1) Receipts - collecting, posting to the accounting records and preparing and making 
bank deposits, 

2) Disbursements - making purchases, receiving certain goods and services, 
presentation of disbursements to the City Council for approval, maintaining 
supporting documentation, preparing, signing and distributing checks and posting 
payments to the accounting records, 

3) Payroll - calculating, preparing, signing and distributing checks and posting 
payments to the accounting records, 

4) Utility billings - preparing and mailing billings, receipting and depositing 
collections, posting collections to customer accounts and accounting records and 
preparing and making bank deposits, 

5) Bank accounts - receiving and reconciling monthly bank statements to accounting 
records and 

6) Reporting - preparing City Council meeting minutes and financial reports, including 
monthly Clerk register reports and the Annual Financial Report. 

The City's primary revenue sources include local option sales tax and road use tax from the State 
of Iowa and property tax collected by Delaware County and remitted to the City. Revenue is also 
received from townships for fire protection and from customers for utility services. The City 
receives payments from the State and County electronically. All other payments are collected 
through the mail, in person or in the utility collection box located at City Hall. Ms. King did not 
prepare receipts for all collections or record the collections on an initial receipts listing. 

All City disbursements, including payroll, are to be made by check. All disbursements are to be 
supported by invoices or other support obtained or submitted by the City Clerk. Each month, the 
City Clerk is to prepare a listing of bills and provide the listing to the City Council for approval. 
After the City Council approves the bills, the City Clerk is to prepare and sign the checks. The 
checks are to be counter-signed by the Mayor. 

The City maintains 4 checking accounts at a bank in Manchester, Iowa. The City also has a 
credit card and a charge account at Wal Mart. Monthly statements for the City's checking 
accounts, credit card and charge account are mailed directly to City Hall where they are opened 
by the City Clerk. Bank statements and check images are not periodically reviewed by members 
of the City Council. The bank statements were not reconciled to the City's accounting system. 

According to the Mayor, Ms. King was not required to maintain regular office hours, but she was 
required to be in the office on Wednesday nights and every other Saturday. He also stated 
Ms. King often worked from home and believed she had a computer the City purchased at her 
home. A computer was also located in City Hall. She used a computer to maintain the City's 
accounting system and track utility information. After Ms. King's termination, she returned a 
number of City records which had been located at her home. 



5 



We spoke with a representative of the City's insurance carrier who stated they contacted Ms. King 
between July and October 2011 regarding an unpaid invoice for insurance premiums. During 
this period, Ms. King submitted several partial payments for the City's insurance premium, but 
she had not paid the premium in full. According to the City's insurance agent, he contacted the 
Mayor regarding the unpaid portion of the premium on October 17, 2011. The Mayor stated he 
was not aware the amount due had not been paid prior to the call from the insurance agent. 
According to the Mayor, he and 2 City Council members spoke with Ms. King regarding the 
unpaid premium. Ms. King admitted she had not paid the premium to the City's insurance 
company. She also admitted to misappropriating funds, but she did not provide any more specific 
information at the time. 

After speaking with Ms. King, City officials decided to review the bank statements and 
subsequently determined Ms. King issued herself several extra payroll checks. On October 19, 
2011, Ms. King contacted 2 City Council members and admitted she issued additional paychecks 
to herself totaling approximately $50,000.00. Also on October 19, 2011, City officials contacted 
the Delaware County Sheriff. The Sheriff notified the Auditor of State of the concerns identified on 
October 24, 201 1. The City Council held a special meeting on October 23, 201 1, during which it 
terminated Ms. King's employment. 

As a result of Ms. King's admission of misappropriating City funds, City officials requested the 
Office of Auditor of State review the City's financial transactions. We performed the procedures 
detailed in the Auditor of State's report for the period March 18, 2002 through November 30, 
2011. 

Detailed Findings 

The procedures performed identified $84,774.88 of improper and unsupported disbursements. 
The improper disbursements identified include $79,557.33 of unauthorized payments to 
Ms. King for payroll, reimbursements and mileage. The improper disbursements also include 
$1,867.75 of payments for FICA and IPERS on the unauthorized payroll and $1,560.00 for late 
fees, penalties and fines paid to the IRS. 

The improper disbursements identified also include $226.23 of personal purchases and late 
charges on the City's Wal Mart charge account and $32.00 of personal purchases and late 
charges on the City's credit card. 

The $1,200.42 of unsupported disbursements identified include 2 payments to Best Buy. All 
findings are summarized in Exhibit A and a detailed explanation of each finding follows. 

Improper and unsupported disbursements 

We reviewed all disbursements from the City's checking accounts for the period March 18, 2002 
through November 30, 2011. Because the City's accounting software was corrupted and 
unusable, we reviewed individual check images. We also reviewed any available documentation 
related to the payments to determine if they were appropriate and discussed all disbursements 
which were unusual in nature with City officials. 

Had listings of disbursements approved by the City Council been available, we would have 
reviewed them. However, copies of City Council meeting minutes maintained at City Hall did not 
include any approved disbursement listings. In addition, a City Council member we spoke with 
and the Mayor stated Ms. King did not provide listings of payments to the City Council for its 
review and approval. 

Based on our review of the available supporting documentation, the vendor, the frequency and 
amount of payments and discussion with the Mayor, we classified the payments as reasonable, 
improper or unsupported. Payments which appeared consistent with City operations based on 
the vendor, the frequency and/or the amount of the payment were classified as reasonable. Some 
of the reasonable payments were supported by appropriate documentation, but some were not. 



6 



Payments were classified as improper if they appeared to be personal in nature or were not 
reasonable for the City's operations. Some of the improper payments were supported by 
documentation, but some were not. Payments were classified as unsupported if appropriate 
documentation was not available and it was not possible to determine if the payment was related 
to City operations or was for personal purchases. 

The improper and unsupported disbursements we identified were issued by Ms. King to herself 
and certain vendors. The improper and unsupported disbursements identified are explained in 
detail in the following sections of the report. 

Checks to Christine (Boudreau) King - Exhibit B lists 372 payments which Ms. King issued to 
herself between June 1, 2002 and October 30, 2011. The checks total $124,890.57. As 
previously stated, Ms. King was authorized to receive monthly payroll checks, which should have 
resulted in 12 payments to Ms. King each year. From May 2002 through October 2011, Ms. King 
should have received 113 monthly payroll checks. However, as illustrated in Exhibit B, in 
May 2003 she began splitting her payroll checks into smaller time periods. As also illustrated by 
Exhibit B, she was not consistent in the manner in which she paid herself. 

Exhibit B illustrates most of the checks prior to July 2005 include some type of a notation in the 
memo portion of the check. The notations made by Ms. King indicate some of the checks were for 
payroll, mileage and reimbursement for certain items. However, beginning in July 2005, the 
notations were made much less frequently. Exhibit B also illustrates the memo portion on a 
number of the checks indicates the payments include payroll, reimbursements and/ or mileage 
combined in a single check. 

Supporting documentation could not be located for the checks listed in Exhibit B. In addition, 
supporting documentation, such as travel claims and vendor receipts, could not be located to 
support the mileage and reimbursement portions of the checks. As a result, we were unable to 
determine what portion of the combined checks was for payroll, reimbursements and mileage. 

The number and amounts of the checks Ms. King issued to herself for each calendar year from 
2002 through 2011 are summarized in Table 1. The Table also includes the average amount of 
each check issued to Ms. King each calendar year. 

Table 1 



Time Period 


Amount 


Number 
of Checks 


Average Check 
Amount 


06/01/02 - 


12/31/02* 


$ 2,717.77 


15 


$ 181.18 


01/01/03 - 


12/31/03 


4,596.69 


19 


241.93 


01/01/04 - 


12/31/04 


8,948.51 


44 


203.38 


01/01/05 - 


12/31/05 


9,313.56 


38 


245.09 


01/01/06 - 


12/31/06 


13,345.81 


38 


351.21 


01/01/07 - 


12/31/07 


16,025.16 


40 


400.63 


01/01/08 - 


12/31/08 


19,961.06 


52 


383.87 


01/01/09 - 


12/31/09 


17,655.42 


55 


321.01 


01/01/10 - 


12/31/10 


15,444.09 


36 


429.00 


01/01/11 - 


10/31/11* 


16,882.50 


35 


482.36 


Total 




$ 124,890.57 


372 


$ 335.73 



* - Periods less than 12 months. 



7 



As illustrated by the Table, the number of checks issued to Ms. King from June 1, 2002 through 
October 31, 201 1 ranged from 15 during the 7 months in 2002 and 19 in 2003 to 55 in 2009. In 
addition, the average amount of the checks ranged from $181.18 in 2002 to $482.36 in 2011. 

As illustrated by Table 1, the number of checks Ms. King issued to herself increased substantially 
after 2003. From 2004 through 2010, Ms. King issued herself between 36 and 55 checks per 
year, which averages from 3 to more than 4 checks per month. During the 10 months she 
received checks in 2011, she received an average of more than 3 checks per month. As also 
illustrated by the Table, although the number of checks Ms. King issued to herself during 2010 
and 2011 decreased from 2009, the average amount of the checks increased each year. 

Based on our experience with cities of comparable size, the frequency and size of the checks listed 
in Exhibit B which include reimbursements are unusually large in number and amount when 
compared to reimbursements and mileage amounts typically paid to a City Clerk. 

The payroll, reimbursement and mileage components of the checks are discussed in detail in the 
following paragraphs. 

Mileage and Reimbursements - According to the Mayor, Ms. King was not authorized to receive 
mileage reimbursements. In addition, the City issues checks directly to vendors, so Ms. King 
should not need to purchase items with her personal funds and subsequently be reimbursed. 
When the Delaware County Sheriff asked Ms. King about the payments, she stated she was 
authorized to receive mileage and reimbursements. She stated she submitted receipts or "account 
slips" for the reimbursements. We were not able to locate any receipts or any other type of 
supporting documentation for the checks issued to Ms. King for mileage and reimbursements. 

We discussed these checks with the Mayor. The Mayor stated Ms. King was authorized to attend 
a Clerks' meeting in 2011. As illustrated by Exhibit B, Ms. King issued a $200.00 check to 
herself on July 26, 201 1 and described it as "clerk meeting food + mileage" in the memo portion of 
the check. The City's credit card was used for the meeting's registration fee. However, because 
Ms. King did not attend the meeting, the registration fee was refunded to the credit card. As a 
result, Ms. King should not have received a reimbursement for the trip. The Mayor also stated 
Ms. King was not authorized to make any other trips. 

Payroll - According to the Mayor, Ms. King was authorized to receive $400.00 per month and 
received 1 pay increase to $550.00 per month. According to the Mayor, the increase occurred 
approximately mid-year 2008. We were not able to locate the minutes of the City Council 
meetings for the months of March through June 2008 and none of the minutes available for our 
review included a notation of a pay increase authorized by the City Council for Ms. King. 
However, by reviewing Iowa Public Employees Retirement System (IPERS) reports we were able to 
determine Ms. King reported payroll of $550.00 starting in July 2008. As a result, we used 
July 2008 as the effective date of Ms. King's pay increase authorized by the City Council. 

We were not able to locate payroll records, including W-2 forms (Wage and Tax Statements), W-3 
forms (Transmittals for Wage and Tax Statements) or the 941 reports (Employer's Quarterly 
Federal Tax Return), submitted to the Internal Revenue Service (IRS) by the City which 
summarized payroll amounts for the period of our investigation. However, we were able to locate 
spreadsheets which summarize gross payroll amounts and amounts withheld from gross pay for 
Ms. King and the City Council members for the period January 2009 through December 2010. 
We were not able to locate spreadsheets for the remaining years. 

During our review of the spreadsheets for 2009 and 2010, the following were identified: 

• The spreadsheets for 2009 and 2010 did not include check numbers. In addition, the net 
payroll amounts recorded for Ms. King did not agree with any of the checks issued to her 
during 2009 and 2010. 



8 



• For the months of October and November 2009, the gross and net pay recorded on the 
spreadsheets by Ms. King for her payroll were zero. However, she received 6 checks 
totaling $3,038.97 during this 2 month period. Of the 6 checks, 4 ranged from $520.64 to 
$789.42 and no description was included in the memo portion of the check. Of the 2 
remaining checks, 1 was for $250.00 and was described as "mileage + meals" in the memo 
portion of the check. The other was for $200.00 and was described as "report hours" in 
the memo portion of the check. It is very unusual for reimbursements for meals and 
mileage and payment for work to result in an even dollar amount. 

• The spreadsheet included gross pay amounts of $750.00 for Ms. King for the months of 
June and July 2009. However, Ms. King was authorized to receive only $550.00 gross pay 
each month during this period. 

• The amount of FICA and IPERS withholdings recorded on the spreadsheet for Ms. King 
were properly calculated. However, the amounts recorded for IPERS did not consistently 
agree with the amounts reported to IPERS. 

• The amount of Federal and State tax withholdings recorded for Ms. King varied for the 22 
months for which gross pay was recorded. The amount of Federal tax withholdings 
recorded was $50.00 for 12 months, $25.00 for 6 months and $20.00 for 3 months. The 
amount of State tax withholdings recorded was $10.00 for 15 months and $5.00 for 6 
months. In addition, Ms. King did not record any Federal or State tax withholdings from 
her gross pay for 1 month. 

• The total amount of income tax withholdings and IPERS contributions recorded on the 
spreadsheets could not be reconciled to payments made by the City. 

Because of the concerns identified with the spreadsheets, they could not be used as 
documentation to support the payroll payments issued from the City's checking accounts during 
2009 and 2010. 

Because sufficient payroll records were not available, we determined the maximum amount of 
Ms. King's authorized net pay for the period June 2002 through October 2011 by calculating the 
amount of IPERS and FICA which should have been withheld from her authorized monthly salary. 
Her net pay should also have been reduced by any Federal and/ or State tax withholdings from her 
gross pay. However, because we are unable to determine the amount, if any, withheld from each 
check for Federal or State tax withholdings, we did not include any in our calculation. As a 
result, the net pay we calculated is the maximum amount Ms. King was authorized to receive 
during the period of her employment. The calculation of Ms. King's maximum authorized net pay 
for the period of her employment is summarized in Table 2. 



Table 2 



Period 


Authorized 
Gross Monthly 
Salary 


IPERS 
Contributions 


FICA 
Withholdings 


Maximum 
Monthly 
Net Pay 


Number 

of 
Months 


Maximum 
Authorized 
Net Pay 


06/01/02 


- 06/30/07 


$ 400.00 


14.80 


30.60 


354.60 


61 


$ 21,630.60 


07/01/07 


- 06/30/08 


400.00 


15.60 


30.60 


353.80 


12 


4,245.60 


07/01/08 


- 06/30/09 


550.00 


22.55 


42.08 


485.37 


12 


5,824.44 


07/01/09 


- 06/30/10 


550.00 


23.65 


42.08 


484.27 


12 


5,811.24 


07/01/10 


- 12/31/10 


550.00 


24.75 


42.08 


483.17 


6 


2,899.02 


01/01/11 


- 06/30/11 


550.00 


24.75 


31.08 


494.17 


6 


2,965.02 


07/01/11 


- 10/31/11 


550.00 


29.59 


31.08 


489.33 


4 


1,957.32 


Total 














$ 45,333.24 



9 



Unauthorized Amount Paid to Ms. King - Table 3 compares the amount paid to Ms. King to her 
authorized maximum net salary payments by fiscal year. Because, according to the Mayor, 
Ms. King was not authorized to receive mileage and should not have incurred costs for the City 
which required reimbursement, Ms. King received $79,557.33 more than authorized, as 
illustrated by the Table. The $79,557.33 is included in Exhibit A as improper disbursements. 



Table 3 



Period 


Ar*tiifi1 

flU LUCll 

Payments 


Maximum 

AiitVi ori 7pH 
numui V-i 

Net Pay 


Payments 


06/01/02 - 


06/30/03* 


$ 5,208.47 


4,609.80 


598.67 


07/01/03 - 


06/30/04 


6,035.86 


4,255.20 


1,780.66 


07/01/04- 


06/30/05 


9,095.25 


4,255.20 


4,840.05 


07/01/05 - 


06/30/06 


10,084.21 


4,255.20 


5,829.01 


07/01/06- 


06/30/07 


18,991.69 


4,255.20 


14,736.49 


07/01/07- 


06/30/08 


14,128.57 


4,245.60 


9,882.97 


07/01/08 - 


06/30/09 


18,162.56 


5,824.44 


12,338.12 


07/01/09 - 


06/30/10 


18,703.11 


5,811.24 


12,891.87 


07/01/10- 


06/30/11 


18,784.90 


5,864.04 


12,920.86 


07/01/11 - 


10/31/11 


5,695.95 


1,957.32 


3,738.63 


Total 




$ 124,890.57 


45,333.24 


79,557.33 



* - June 2002 payment is included with fiscal year 2003 in Table 2. 



According to the Mayor, Ms. King's wages and reimbursements were to be paid from the General 
Fund checking account. However, Ms. King issued herself 10 checks totaling $3,751.46 from the 
Sewer Fund checking account. The 10 checks are identified in Exhibit B. The Mayor stated 
Ms. King was not authorized to issue payroll or reimbursement checks from this account. 

On February 10, 2012, the Delaware County Sheriff met with Ms. King. When asked by the 
Sheriff, Ms. King stated she issued herself additional wages in some months with the intention of 
not issuing herself a payroll check the following month. She stated she believed this would 
balance the payroll amounts. However, when her husband lost his job, she was not able to pay 
her personal bills without a paycheck the subsequent month. 

Payments to IPERS - We determined Ms. King reported unauthorized payroll to IPERS. We 
obtained wage reports from IPERS and compared the payroll amounts Ms. King listed in the 
reports to her authorized payroll. Exhibit C compares the payroll reported to IPERS to her 
authorized payroll. As illustrated by the Exhibit, Ms. King did not report any payroll for certain 
quarters, even though she was employed during the entire quarter. 

The Exhibit also calculates the amount of additional employer and employee IPERS contributions 
paid by the City for the unauthorized payroll reported. As illustrated by the Exhibit, the 
additional contributions total $631.30. In addition, we determined the City incurred $242.00 of 
late fees and penalties because Ms. King did not remit contributions to IPERS in a timely manner. 
As the City Clerk, it was Ms. King's responsibility to ensure all City obligations were paid in a 
timely manner. The $873.30 of additional contributions, late fees and penalties are included in 
Exhibit A as improper disbursements. 



10 



Because of the additional IPERS contributions by the City on the unauthorized payroll, the 
amount of benefits Ms. King may receive as an IPERS retiree or any amount she withdraws from 
the retirement plan will be greater than if her payroll had not been improperly reported. 

FICA Payments - As previously stated, we were not able to locate IRS forms for payroll, including 
941s and W-2s. As a result, we were not able to definitively determine the amount of payroll 
Ms. King reported to the IRS for herself, the Mayor and City Council members. However, we 
obtained account history reports from the IRS. Based on these reports, we determined it appears 
Ms. King reported unauthorized payroll for herself to the IRS. As a result, the City paid the 
employee and employer share of FICA on the unauthorized payroll. 

Exhibit D compares the payroll reported to IPERS to her authorized payroll. Payroll reported to 
IPERS should be consistent with payroll reported to the IRS for FICA. As illustrated by the 
Exhibit, Ms. King did not report any payroll for certain quarters even though she was employed 
throughout the entire quarter. The Exhibit also calculates the amount of additional employer and 
employee shares of FICA paid by the City on the unauthorized payroll reported. As illustrated by 
the Exhibit, the additional payments to the IRS total $994.50, which is included in Exhibit A as 
improper disbursements. 

In addition, the account history reports obtained from the IRS show the City paid $615.02 of late 
fees and penalties. Ms. King's job duty was to prepare accurate reports timely and issue 
payments timely. 

We also identified 2 checks issued to the United States Treasury which were not listed as 
payments on the account history reports obtained from the IRS. Table 4 lists the check number, 
date and amount. Although the back of the checks include the City's tax identification number, 
we were not able to determine the purpose of the payment. According to the Mayor, a 
representative from the IRS stated the payments were for fines levied against the City. Fines 
would not be included in the account history reports. 



Table 4 



Check 


Check 




Number 


Date 


Amount 


5329 


01/02/09 


$ 350.00 


5408 


11/14/09 


1,210.00 


Total 




$ 1,560.00 



The $1,560.00 of late fees, penalties and fines paid to the IRS is included in Exhibit A as 
improper disbursements. 

Wal Mart Charge Account - As previously stated, the City has a charge account with Wal Mart. 
The authorized users of the account include Ms. King, the Mayor, City Council members and 
volunteer firefighters. According to City officials we spoke with, Ms. King, City Council members 
and the Mayor primarily used the charge account. Authorized purchases on the account included 
office supplies, supplies for the City and fire trucks and items for the annual Christmas party. 

The charge account statements were not located at City Hall. However, Ms. King provided a 
number of the statements after her termination, but she did not provide all statements. The 
Mayor obtained all statements from Wal Mart for the charge account. The monthly charge 
account statements list each item purchased. We determined all payments on the charge account 
were made with checks issued from a City bank account. 

Because all supporting documentation was not available, we discussed a number of the charges 
on the charge account statements with the Mayor. Based on our review and the available 



11 



supporting documentation, the frequency and amount of charges and discussions with the Mayor, 
we classified the charges as reasonable, improper or unsupported. Table 5 summarizes the 
purchases classified as improper and discussed in the paragraphs following the Table. 

Table 5 

Date Description Amount 

03/07/09 Quickbooks Pro 2009 ® $179.92 
03/18/11 Cyclonic heater 35.00 
Total $214.92 



• On March 9, 2009, Quickbooks Pro 2009® was purchased for $179.92. According to the 
Mayor, the 2007 version of Quickbooks® is installed on the City's computer. 

• On March 18, 2011, a cyclonic heater was purchased for $35.00. According to the Mayor, 
he noticed Ms. King had a small space heater under her desk at City Hall. He has not 
seen the space heater at City Hall since Ms. King was terminated from employment. When 
the Delaware County Sheriff spoke with Ms. King, she stated she did not have any City 
property at her home. 

In addition, we identified 14 instances in which late charges were incurred. Of the 14 instances, 
the late charges were reversed the following month on 2 occasions. The late charges ranged from 
$.01 to $3.10 and total $11.31. As previously stated, it was Ms. King's responsibility to ensure 
payments were made in a timely manner. 

The $226.23 of improper charges and late charges are included in Exhibit A as improper 
disbursements. 

Credit Card - The City has a credit card issued by 1 st State Bank. The original credit card issued 
in early 2010 included the name of the City in addition to Ms. King's and the Mayor's names. The 
credit card was kept in a desk drawer at City Hall. Both Ms. King and the Mayor were authorized 
to use the credit card to purchase supplies for the City. The original account was closed after 
Ms. King's termination in October 201 1 and replaced with a new credit card. 

The credit card statements were not located at City Hall. After her termination, Ms. King provided 
a number of the statements she had at her home. However, she did not provide all statements. 
The Mayor obtained all statements for the City's credit card from 1 st State Bank. The monthly 
credit card statements listed all charges, fees and payments. Exhibit E lists each charge and fee 
incurred on the City's credit card from March 2010 through September 2011. We reviewed each 
charge to determine if it was appropriate for City operations. 

Because supporting documentation was not available for purchases made with the credit card, we 
discussed a number of the charges on the statements with the Mayor. Based on our review of the 
vendor, the frequency and amount of charges and discussions with the Mayor, we classified each 
charge as reasonable, improper or unsupported. As illustrated by the Exhibit, $130.02 of the 
charges on the City's credit card were determined to be improper. The charges identified as 
improper include: 

• A $52.50 purchase at Kwik Star on September 9, 2010. According to the Mayor, the City 
Council did not authorize this charge. When the Delaware County Sheriff spoke with 
Ms. King, she stated she accidently used the City's credit card instead of her personal 
credit card and she reimbursed the City for the charge. Using the credit card statements 
and Ms. King's personal bank account statements, we determined Ms. King issued a check 
from her personal bank account to VISA as payment for the charge on October 10, 2010. 



12 



• A $67.51 purchase at Kwik Star on June 25, 2011. According to the Mayor, the City 
Council did not authorize this charge. He also stated Ms. King had told him she accidently 
used the City's VISA card and would reimburse the City for the charge. During their 
meeting on February 10, 2012, she also told the Sheriff the same thing. 

Using the credit card statements, we identified an electronic payment of $67.51 on 
August 17, 2011. The payment was not made from a City bank account or Ms. King's 
personal bank account which we reviewed. According to a representative from VISA we 
spoke with, they were unable to track the payment to a specific account. As a result, we 
were unable to determine the source of the payment. 

• A $10.01 purchase from Elkader Fuel on September 25, 2011. According to the Mayor, 
the City Council did not authorize the charge. He also stated Ms. King would not be in 
Elkader for City business. When the Delaware County Sheriff spoke with Ms. King, she 
stated she did not remember the charge. Using the credit card statements and the City's 
bank statements, we determined all payments on the City's credit card after the purchase 
were made with City funds. 

Table 6 lists the amount of improper charges on the City's credit card which were not paid for 
with City funds. As illustrated by the Table, only $10.01 of the $130.02 of improper charges 
identified was paid for with City funds. 

Table 6 

Description Amount 

Improper charges, per Exhibit E $ 130.02 

Less improper charges paid for by: 

Ms. King (52.50) 

Unknown party (67.51) 

Improper charges paid for with City funds $ 10.01 

During our review of the credit card statements, we also identified $21.99 of interest and late fees 
paid by the City. As previously stated, as the City Clerk, Ms. King was responsible for making 
payments in a timely manner. The $32.00 of improper charges, interest and late fees are included 
in Exhibit A as improper disbursements. 

Other Disbursements - As previously stated, the City has 4 bank accounts which are described 
in the following paragraphs. The activity in each account was reviewed. 

• The City's primary checking account is referred to as the General Fund. All collections 
received by the City are deposited to this account and payments for all the City's 
operations, other than for sewer operations, are made from this account. 

• As previously stated, 10 checks were improperly issued to Ms. King from the checking 
account referred to as the Sewer Fund. In addition to the 10 checks, the activity in the 
checking account includes payments to the sewer operator and payments related to 
construction projects. All deposits to the account are transfers from the General Fund. 

• The checking account referred to as the Generator Fund was established in 
August 2008 with a $1.00 deposit. As of June 30, 2011, there has been no additional 
activity in the account and the balance was still $1.00. 

• The bank account established for the Fire Department was set up as a high yield 
savings account. Collections deposited to the account are transferred to other accounts 
held by the City, as needed. Checks have not been issued from the account. No 
improper or unsupported disbursements were identified from this account. 



13 



We reviewed all checks from the City's General Fund account. Because supporting 
documentation could not be located for a significant number of the checks, we discussed certain 
disbursements with the Mayor. Based on our review of the vendor, the frequency and amount of 
payments, available supporting documentation and discussion with the Mayor, we classified the 
payments as reasonable, improper or unsupported. 

We identified improper and unsupported disbursements which are listed in Exhibit F. The 
improper payments were to vendors from whom the City would not have a reason to make a 
purchase according to the Mayor. The unsupported payments were not supported by appropriate 
documentation and, based on our review of the vendor, the amount and frequency of purchases 
and discussions with the Mayor, we were unable to determine if the purchases were for City 
operations or were personal in nature. The improper and unsupported payments identified 
include: 

• 2 checks issued to Best Buy. The Mayor stated he thought it was possible 1 of the 
payments may have been for a laptop computer purchased by the City for Ms. King to 
use at her home. City officials were not able to locate a laptop computer. When the 
Delaware County Sheriff asked Ms. King if she had a computer purchased by the City 
at her residence, she stated she did not. 

• 1 check issued to Regional Medical Center for $17.27. The Mayor was unable to 
determine what the payment was for. 

• 3 checks issued to Sam's Club. A $35.00 check was issued for the annual 
membership fee. The remaining 2 checks were for purchases. According to the Mayor, 
the City Council did not authorize a membership at Sam's Club and he did not know 
what would have been purchased from Sam's Club for the City. 

The $331.10 of improper payments and $1,200.42 of unsupported payments are included in 
Exhibit A. 

In addition, based on the vendor, we identified certain disbursements which may not meet the 
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. 
According to the Opinion, it is possible for certain expenditures to meet the test of serving a public 
purpose under certain circumstances, although such items will certainly be subject to a deserved 
close scrutiny. The line to be drawn between a proper and an improper purpose is very thin. The 
payments identified for which the public purpose served was not documented include: 

• 1 payment to Jolene Kaiser for $25.00. We located a receipt from Okoboji Grill, but we 
were unable to determine what was purchased because the receipt was not itemized. 

• 1 payment to Pizza Ranch for $30.00. The memo portion of the check included the 
notation "gift card". The Mayor was unable to identify why a gift card was purchased. 

• 5 payments to Posy Place Floral and Gift totaling $247.19. According to the Mayor, 
floral arrangements were purchased for funeral services. 

• 9 payments to R Place totaling $657.90. According to the Mayor, R Place is owned by a 
City Council member. The City occasionally purchases food items from R Place. 

• 1 charge made on the City's credit card on January 15, 2011 at Okoboji Grill for a 
meal for City Council members. The charge totaled $394.77. 

Collections 

As previously stated, the City's primary revenue sources include taxes from the State of Iowa and 
Delaware County. In addition, the City receives revenue for providing sewer and garbage services 
to residents. We reviewed documentation related to these revenue sources to determine if 
collections were properly deposited. 



14 



Taxes from the State of Iowa - The majority of revenues received from the State of Iowa are road 
use tax and local option sales tax. We confirmed all payments to the City by the State of Iowa and 
determined they were properly deposited to the City's General Fund checking account. 

Taxes from Delaware County - We confirmed all payments to the City by Delaware County were 
properly deposited to the City's General Fund checking account. 

Sewer and Garbage Fees - Sewer and garbage services are provided to each household. Each 
household is billed each month for services. Monthly reconciliations of the amounts billed, 
collected, deposited and delinquent amounts are not prepared. As a result, we were unable to 
ensure all fees were properly billed, collected and subsequently deposited to the City's bank 
accounts. However, the amounts billed and deposited appeared reasonable based on the number 
of households served and the rates established by the City Council. 

Other Administrative issues 

Payments to the Mayor - From June 1, 2002 through November 30, 2011, the Mayor received 
$34,240.58. This amount includes wages for his duties as Mayor, sewer operator and reading 
meters, as well as payments for snowplowing and other services. According to the Mayor, the 
wages he received for being the Mayor were recorded on his annual W-2. Because copies of W-2s 
were not available, we were unable to confirm this. According to the Mayor, the payments he 
received as sewer operator were treated as payments to an independent contractor rather than an 
employee. As a result, they were reported on IRS Form 1099. We were unable to determine 
whether the wages received for meter reading, snowplowing and other services were recorded on 
his annual W-2 or included on Form 1099. 

The IRS definition of an employee is anyone whose employer controls what will be done and how it 
will be done. In addition, the IRS suggests completing a checklist to determine whether an 
individual is an independent contractor or an employee. Using guidance provided by the IRS, we 
determined the Mayor would be an employee of the City for sewer operations and meter reading. 
As a result, the payments for those services should have been included as wages on his W-2 form. 

In addition, section 372.13(8) of the Code of Iowa states, in part, "Except as provided in section 
362.5, an elected city officer is not entitled to receive any other compensation for any other city 
office or city employment during that officer's tenure in office, but may be reimbursed for actual 
expenses incurred." Section 362.5(2) of the Code of Iowa restricts a city officer or employee from 
having a direct or indirect interest in a contract with the officer's or employee's city. However, in 
accordance with section 362.5(3k) of the Code, this restriction does not apply to, "Contracts not 
otherwise permitted by this section for the purchase of goods or services by a city having a 
population of two thousand five hundred or less, which benefit a city officer or employee, if the 
purchases benefiting that officer or employee do not exceed a cumulative total purchase price of 
two thousand five hundred dollars in a fiscal year." The Mayor receives $350 per month as sewer 
operator and $39 per month for meter readings. Wages for these two services total more than 
$2,500 per fiscal year. 

Payments to City Council Members - We also reviewed the quarterly payroll checks issued to 
City Council members. As previously stated, we located payroll records for the period July 2009 
through October 2011, but payroll records for earlier time periods were not located. When we 
reviewed payroll checks issued to each City Council member, we identified the following: 

• The City Council meeting minutes did not include the authorized amount of pay for City 
Council members. As a result, we were unable to determine if the City Council members 
were paid the appropriate amount. 

• We identified several instances in which City Council members were paid different 
amounts even though they attended the same number of meetings based on City Council 
meeting minutes. We also identified several instances in which City Council members 



15 



were not issued payments even though they attended meetings based on City Council 
meeting minutes. 

• Several City Council members perform other services for the City, including mowing and 
snowplowing. According to the Mayor, they do not always request payment for their 
services. However, they occasionally request payment if a significant amount of time is 
spent performing the service. We identified several checks issued to City Council members 
as payment for their services. However, we were not able to determine if the payments are 
appropriate because supporting documentation was not submitted or retained. 

Improperly Reported Balances - As previously stated, Ms. King was responsible for preparing 
reports for the City Council. The reports were to include the current bank balances for each 
account held by the City. We determined the balances reported by Ms. King for 3 of the 4 bank 
accounts held by the City did not agree with the balances shown on the related bank statement. 
Ms. King reported balances larger than the actual balances in the accounts for each of the 13 
monthly reports available for our review. The differences are listed by account in Exhibit G for 
each month and summarized in total in Table 7. 



Table 7 



Month 


Reported 
Balances 


Actual 
Balances 


Difference 


June 2010 


$ 116,775.96 


77,661.63 


39,114.33 


July 2010 


96,617.55 


58,386.98 


38,230.57 


August 2010 


68,040.55 


56,927.23 


11,113.32 


September 2010 


60,906.53 


9,820.72 


51,085.81 


October 2010 


65,668.33 


11,973.09 


53,695.24 


November 2010 


74,443.71 


21,098.93 


53,344.78 


December 2010 


72,847.87 


19,068.75 


53,779.12 


January 201 1 


77,093.08 


20,061.72 


57,031.36 


February 2011 


77,853.08 


21,602.44 


56,250.64 


March 2011 


77,149.91 


16,227.22 


60,922.69 


April 2011 


77,919.01 


28,786.60 


49,132.41 


May 2011 


67,690.24 


17,747.60 


49,942.64 


June 2011 


63,168.74 


4,226.12 


58,942.62 



As illustrated by the Exhibit, the largest differences were in the City's General Fund checking 
account and varied from approximately $3,000.00 to approximately $75,000.00. The differences 
in the City's Sewer Fund checking account varied from approximately $11,000.00 to 
approximately $15,000.00. The differences in the City's Road Use Tax Fund checking account 
varied from approximately $28.00 to approximately $11,000.00. The Generator Fund checking 
account was reported accurately with a balance of $1.00. 

United States Department of Agriculture (USDA) - On March 31, 1999, the City received a 
$108,300.00 loan and a $259,610.00 grant from the USDA. As part of the agreement with the 
USDA, the City was to set up a debt service reserve account equal to a monthly payment or one- 
twelfth of the annual payment to ensure repayment of the loan. The reserve account was to be 
established at an initial amount with additional amounts transferred each month until an annual 
payment of $8,827.00 was accumulated. 

We determined the proceeds from the loan and the grant were properly deposited to a City bank 
account. According to an audit report for the fiscal year ended June 30, 2003, a reserve account 
was properly set up within the City's accounting software. 



16 



Recommended Control Procedures 

As part of our investigation, we reviewed the procedures used by the City of Masonville to process 
receipts, disbursements and payroll. An important aspect of internal control is to establish 
procedures which provide accountability for assets susceptible to loss from error and irregularities. 
These procedures provide the actions of one individual will act as a check on those of another and 
provide a level of assurance errors or irregularities will be noted within a reasonable time during 
the course of normal operations. Based on our findings and observations detailed below, the 
following recommendations are made to strengthen the City's internal controls. 

A. Segregation of Duties - An important aspect of internal control is the segregation of duties 
among employees to prevent an individual employee from handling duties which are 
incompatible. The former City Clerk had control over each of the following areas for the 
City: 

(1) Receipts - collecting, posting to the accounting records and preparing and 
making bank deposits, 

(2) Disbursements - making purchases, receiving certain goods and services, 
presentation of disbursements to the City Council for approval, maintaining 
supporting documentation, preparing, signing and distributing checks and 
posting payments to the accounting records, 

(3) Payroll - calculating, preparing, signing and distributing checks and posting 
payments to the accounting records, 

(4) Utility billings - preparing and mailing billings, receipting and depositing 
collections, posting collections to customer accounts and accounting records 
and preparing and making bank deposits, 

(5) Bank accounts - receiving and reconciling monthly bank statements to 
accounting records and 

(6) Reporting - preparing City Council meeting minutes and financial reports, 
including monthly Clerk register reports and the Annual Financial Report. 

Recommendation - We realize segregation of duties is difficult with a limited number of 
staff. However, the duties within each function listed above should be segregated between 
the City Clerk, the Mayor and City Council members. In addition, the City Council should 
review financial records, perform reconciliations and examine supporting documentation 
for account records on a periodic basis. 

In addition, bank statements should be delivered to and reviewed by an official who does 
not collect or disburse City funds. Bank reconciliations should be performed on a monthly 
basis. 

B. Reconciliation of Utilities Billings, Collections and Delinquent Accounts - Utility billings, 
collections and delinquent accounts were not reconciled. In addition, meter reading sheets 
were not retained and available for review. 

Recommendation - Procedures should be established to ensure utility billings are 
reconciled to subsequent collections and delinquent accounts for each billing period. The 
City Council, or an independent individual designated by the City Council, should review 
the reconciliations and monitor delinquent accounts. Delinquent accounts should not be 
written off without City Council approval. 

In addition, all supporting documentation, such as meter reading sheets, should be 
maintained at City Hall. 



17 



C. Disbursements - During our review of the City's disbursements, we determined supporting 
documentation was not maintained for the majority of disbursements. The invoices 
available were not properly marked paid to prevent duplicate payment and did not include 
information on how the expense was in the best interest of the City (public purpose). 
Because the City could not locate approved listings of bills, we were unable to determine if 
the City Council reviewed and approved the disbursements. 

Recommendation - All disbursements should be supported by invoices or other supporting 
documentation and be reviewed and approved by the City Council. For those 
disbursements paid prior to City Council approval, a listing should be provided to the City 
Council at the next meeting for its review and approval. 

To further strengthen controls, all paid invoices should be properly marked or stamped 
paid with the date of payment to aid in preventing duplicate payment of invoices. Invoices 
should also provide information on the public purpose of the disbursement when the 
public purpose is not evident. 

D. Credit Card /Charge Accounts - The City had a credit card issued in the City's name and 
the former City Clerk's name which was held by the former City Clerk. The City also had a 
charge account at Wal Mart. We identified purchases made with the credit card and the 
charge account which were not supported by adequate documentation and were an 
improper use of City funds. In addition, we determined the City incurred penalties and 
interest charges because the former City Clerk did not pay the credit card balance in a 
timely manner. 

Recommendation - The City Council should develop a written credit card policy which 
includes requiring original receipts be submitted for all charges. The support should also 
include a description of the public purpose of the charge when the public purpose is not 
evident. The City Council should periodically review the credit card statements and the 
charge account statements to ensure charges appear appropriate and payments are made 
in a timely manner so the City does not incur penalties or interest charges. 

E. Payroll - During review of payroll, the following were identified: 

(1) There is no record of the City Council's approval of pay to the former City 
Clerk or City Council members. 

(2) Pay for City Council members is not consistent. 

(3) The City incurred penalties for IPERS and FICA because the former City Clerk 
did not remit payroll taxes in a timely manner. 

Recommendation - The City should implement procedures to ensure appropriate payroll 
records are maintained, including detailed time sheets for all employees paid on an hourly 
basis. The time sheets should be approved and initialed by the employee's supervisor or 
by an independent official who is not involved with payroll. 

In addition, the City Council should review and approve each employee's authorized pay on 
a periodic basis. The approved pay should be documented in a resolution, the City 
Council meeting minutes or in some other appropriate manner. City officials should 
review payroll records to ensure payroll taxes are remitted in a timely manner. 

F. IPERS Contributions - Ms. King reported unauthorized payroll to IPERS and the City made 
contributions on the unauthorized payroll. As a result, the benefits Ms. King may receive 
as an IPERS retiree or any amount she withdraws from the retirement plan will be greater 
than if her payroll had not been improperly reported. 

Recommendation - City officials should work with IPERS representatives to ensure 
appropriate steps are taken to reflect the authorized amount of Ms. King's payroll. 



18 



G. Records of Accounts - All accounting functions were primarily handled by the former City 
Clerk. The transactions and resulting balances were not properly reported to the City 
Council each month. 

Recommendation - Monthly financial reports should be accurately prepared and presented 
to the City Council. They should include all financial activity and reconciled fund/ account 
balances supported by bank reconciliations. 

H. Receipts - Receipts were not issued for a number of collections. 

Recommendation - The City Council should implement procedures to ensure receipts are 
issued for money received to ensure all collections are deposited. 

I. USDA Loan and Grant - The City entered into an agreement with the USDA for receipt of 
loan and grant monies. We were unable to determine the City complied with all terms set 
forth in the agreement. 

Recommendation - City officials should implement policies and procedures to ensure all 
conditions established by the USDA in the agreement are complied with. City officials 
should contact USDA to resolve any non-compliance issues. 

J. City Council Minutes - Chapter 21 of the Code of Iowa requires minutes be kept of all 
meetings of governmental bodies. During our review of minutes, we determined the 
minutes were not properly signed by the City Clerk and/ or Mayor to authenticate the 
record. In addition, not all disbursements were presented to the City Council for approval. 

Recommendation - The City should implement procedures to ensure the City Clerk and 
Mayor sign all meeting minutes and any errors are noted and corrected. In addition, the 
City Council should ensure all City obligations are presented to the City Council for 
approval prior to payment. 

K. Payments for Other Services - Payments to City officials are governed by sections 372. 13(8) 
and 362.5 of the Code of Iowa. These requirements allow officials of cities with 
populations of less than 2,500 to be compensated up to $2,500.00 per fiscal year for 
services provided to the City, such as mowing, snow plowing and other services, without 
those services being awarded through a competitive bid process. 

We identified a number of payments made to the Mayor for various services performed for 
the City. The Mayor received $350.00 per month as sewer operator and $39.00 per month 
for meter reading. In addition, the Mayor performed other services such, as mowing and 
snow plowing. The wages received total more than $2,500.00 in a fiscal year. 

We also noted the wages the Mayor received as sewer operator were reported on Form 
1099 as an independent contractor. The IRS provides guidance on distinguishing between 
an employee and an independent contractor. Because the Mayor would be considered an 
employee in accordance with these guidelines, his wages as sewer operator should have 
been reported on a W-2 form. 

Recommendation - The City should monitor the payments to City officials to ensure 
compliance with the Code of Iowa. In addition, the City should consult legal counsel to 
determine appropriate action to be taken for the payments made to the Mayor in excess of 
the amount allowed by the Code. The City should also report wages as sewer operator on 
the Mayor's W-2 form. The City should consult legal counsel to determine if revised tax 
forms should be prepared by the City. 



19 



Exhibits 



20 



Exhibit A 



Report on Special Investigation of the 
City of Masonville 

Summary of Findings 
For the Period March 18, 2002 through October 19, 201 1 



Exhibit/ 

Table /Page Improper Unsupported 

Description Number Amount Amount Total 

Improper and unsupported disbursements: 



Excess payments to Christine (Boudreau) King 


Table 3 


$ 79,557.33 




79,557.33 


Payments to IPERS 


Page 10 


873.30 




873.30 


FICA Payments 


Exhibit D 


994.50 




994.50 


Late Fees, Penalties and Fines to IRS 


Table 4 


1,560.00 




1,560.00 


Wal Mart Charge Acount 


Page 12 


226.23 




226.23 


Credit Card 


Page 13 


32.00 




32.00 


Other Disbursements 


Exhibit F 


331.10 


1,200.42 


1,531.52 


Total 




$ 83,574.46 


1,200.42 


84,774.88 



21 



Report on Special Investigation of the 
City of Masonville 



22 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 



Number 


L*necK Date 


Payee 


Memo 


Amount 


3404 


06/01/02 


Christine Boudreau 


None 


$ 22.50 


3405 


06/01/02 


Christine Boudreau 


None 


334.80 


3425 


07/01/02 


Christine Boudreau 


wages 


334.80 


3441 


07/05/02 


Christine Boudreau 


Wal-Mart telephone cord, extension cord 


12.04 


3459 


08/01/02 


Christine Boudreau 


None 


335.60 


3470 


08/20/02 


Christine Boudreau 


July /Aug mileage 


65.00 


3474 


09/01/02 


Christine Boudreau 


wages 


335.60 


3494 


09/20/02 


Christine Boudreau 


mileage Iowa League Conference 180; clerk meeting 
35; recorder's conference/ bank 20 


88.13 


3496 


10/01 /02 


Christine Rondrean 


wages 


335 60 


3515 


10/25/02 


Christine Rondrean 


reimburse nhone card for TTftDA plosint? nbone palls 


10.00 


3516 


10/31 /02 


Christine Rondreaii 


Nov navrhppk 


335 60 


3535 


11/02/02 

A. A. / KJ £j J \J £j 


Christine Rondreaii 


wages 


335 60 


3530 


A. A. / I \J £j 


Christine Rondrean 


nhnnp card reimburse 


30.00 


3534 


11/29/02 


Christine Boudreau 


Oct/ Nov mileage 


60.75 


3551 


12/17/02 


Christine Boudreau 


mileage budget workshop; ECIA meeting, Clark 
meeting 


81.75 


Subtotal 








2,717.77 


3560 


01/01/03 


Christine Boudreau 


wages 


335.60 


3558 


01/08/03 


Christine Boudreau 


mileage 1/8 - 1/21 


60.48 


3564 


01/22/03 


Christine Boudreau 


wages $335.60; tax forms $4.03 


339.63 


3603 


03/01/03 


Christine Boudreau 


wages 


335.60 


3624 


03/24/03 


Christine Boudreau 


wages 


335.60 


3636 


04/30/03 


Christine Boudreau 


reimburse for supplies @ Wal-Mart 


26.23 


3637 


05/01/03 


Christine A. Boudreau 


wages 


335.60 


3667 


05/20/03 


Christine Boudreau 


part of monthly wages 


100.00 


3670 


05/30/03 


Christine A. King 


June wages 


235.60 


3677 


06/17/03 


Christine King 


mileage May & June clerk meeting; lunch meeting 


31.76 


3679 


06/27/03 


Christine A. King 


7/1/2003 - 7/31/2003 pay period 


354.60 


3694 


07/15/03 


Christine King 


hotel for annual conference Iowa League of Cities 


300.00 


3708 


08/01/03 


Christine A. King 


08/01/2003 - 08/31/2003 


354.60 



23 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 



Number 


Check Date 


Payee 


Memo 


Amount 


3725 


09/02/03 


Christina A. King 


wages 


354.60 


3740 


10/01/03 


Christina A. King 


Wages 


344.60 


3767 


10/21/03 


Chrisstine King 


October Partial Wage 


100.00 


3772 


11/03/03 


Christine King 


wages 


254.60 


3787 


11/17/03 


Christine King 


Milage/ reimburse office supplies 


42.99 


3789 


11/25/03 


Christine King 


November Wages 


354.60 


Subtotal 








4,596.69 


3815 


01/01/04 


Christine A. King 


Payroll 1/1/2004 - 1/31/2004 


354.60 


3818 


01/ 10/04 


Christine A. King 


Reimburse office supplies 


80.85 


3834 


01/15/04 


Christine A. King 


TIT _ ,^ 1 / I 1 /I fT / A ^ 

Wages 1/1 - 1/15/04 


167.30 


3844 


01/^9/04 


Christine King 


wages 1/16- 1/30 


167.30 


3848 


02/09/04 


Christine King 


reimburse office supplies from Wal-mart 2/08/2004 


59.49 


3849 


02/09/04 


Christine King 


Wages 2/01/2004 - 2/15/2004 


167.30 


3863 


02/23/04 


Christine King 


reimburse for food for clerk meeting 


75.36 


3862 


02/23/04 


Christine King 


Wages 2/15/2004 - 2/28/2004 mileage 


200.30 


3877 


03/09/04 


Christine King 


March Wages 


167.30 


3874 


03/22/04 


Christine King 


wage 


167.30 


3875 


03/22/04 


Christine King 


None 


340.60 


3889 


04/12/04 


Christine A. King 


wages 


167.30 


3901 


05/01/04 


Christine A. King 


April Wages 


354.60 


3902 


05/05/04 


Christine A. King 


None 


45.62 


3903 


05/08/04 


Christine A. King 


04/01/2004 - 4/30/2004 Pay Period 


400.00 


3920 


05/31/04 


Christine A. King 


05/01/2004 - 05/31/2004 Pay Period 


344.60 


3921 


06/07/04 


Christine A. King 


lawsuit photo copies $15.60 Mileage $7.85 


25.45 


3962 


06/23/04 


Christine A. King 


06/01/2004 - 06/30/2004 Pay Period 


344.60 


3953 


06/23/04 


Christine A. King 


Purchase of Software Updates 


300.00 


3976 


07/12/04 


Christine King 


07/01/2004 - 07/12/2004 Pay Period 


188.70 


3960 


07/16/04 


Christine King 


7/13 - 7/18 cell phone use, mileage 


153.75 


3987 


07/21/04 


Christine King 


reimburse credit card charges - books, supplies and 
materials 


275.23 


3980 


07/24/04 


Christine King 


wages 7-18 to 7-24-2004 


141.52 



24 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 





Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 










Per Check 




Check 
Number 


Check Date 


Payee 


Memo 


Amount 


3989 


08 /09 /04 
wo/ i 




07 /95 /9004 - 7/31 /9004 Pnv Period 


90.35 


4002 


08/09/04 


(~*ViT*i<3tinp A TCincr 


08/09/9004 - 08/08/9004 Pav Period 


130.97 


4003 


OR 1 1 4. /D4- 




08/00/9004 OR / 1 ^ /9DD4 Pay PprinH 


128.97 


3984 


P\Q / OQ IC\A 
UO / Z,d j 


Christine A. King 


waoPQ q / i a. /on04 R/99/9004 
wages 0/ id/ /uut - 0/ / 


90.35 


4005 




lt> llllc rt. ivlllg 


rvciiiiuui oc iviiicd^c, cupicu, ClCdll upt_iciyt>, 1UULI cLIlU 

cleaning supplies 


50.45 


4006 


09/04/04 


Chrisine A. King 


Payroll 


525.35 


4036 


09/20/04 


Christine King 


iVone 


90.35 


4039 


09/25/04 


Christine A. King 


Wage 


90.35 


4040 


09/29/04 


Christine A. King 


Sept Milage, reimbursement lunch and meeting 


56.89 


4049 


10/02/04 


Christine A. King 


None 


90.35 


4065 


10/11/04 


Christine A. King 


None 


186.45 


4066 


10/16/04 


Christine A. King 


Wages, Phone use and Mileage 


150.45 


4072 


10/23/04 


Christine A. King 


Annual Report House 


285.46 


4073 


10/28/04 


Christine A. King 


Postage, Mileage for Oct. 


145.00 


4076 


11/01/04 


Christine A. King 


None 


90.35 


4092 


11/08/04 


Christine A. King 


Fire Equipment 


165.35 


4094 


11/15/04 


Christine A. King 


BackPay and Pay Mileage 


174.70 


4095 


11/20/04 


Christine A. King 


October Services 


578.70 


4097 


11/27/04 


Christine A. King 


None 


250.00 


4100 


12/07/04 


Christine A. King 


Dec Wages 


487.92 


4125 


12/21/04 


Christine A. King 


Wages, year end mileage, Ipers and year end phone 


400.68 


Subtotal 








8,948.51 


4126 


01/10/05 


Christine A. King 


None 


487.92 


4136 


01/19/05 


Christine A. King 


Mileage 1/9, 1/10, 1/17, 1/19 30 each at .37 cents 


44.40 


4140 


02/02/05 


Christine A. King 


None 


492.93 


4141 


02/08/05 


Christine A. King 


Mileage-Lunch-Meeting 


136.42 


4155 


02/22/05 


Christine A. King 


Mileage 


81.00 


4156 


02/25/05 


Christine A. King 


wages 


507.92 


4157 


03/01/05 


Christine A. King 


reimburse for stamp 2 roll - 23cents < 37 cents 


120.00 



25 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 


Check Date 


Payee 


Memo 


Amount 


4158 


03/04/05 


Christine A. King 


wage march 


126.98 


4159 


03/08/05 


Christine A. King 


wages 


126.97 


4181 


03/18/05 


Christine A. King 


None 


126.98 


4182 


03/21/05 


Christine A. King 


Wages 


126.97 


4183 


03/26/05 


Christine A. King 


Mileage Reimburse office supplies 


26.89 


4184 


03/28/05 


Christine A. King 


wages 


126.97 


4190 


04/11/05 


Christine A. King 


Invoice 1/3/05 


126.89 


4206 


04/25/05 


Christine A. King 


None 


126.98 


4208 


05/02/05 


Christine A. King 


Wages 2005 


477.92 


4223 


05/16/05 


Christine A. King 


Payroll 


253.95 


4214 


05/25/05 


Christine A. King 


Mileage /Lunch ECIA Dubuque 


59.37 


4230 


06/01/05 


Christine A. King 


None 


253.95 


4245 


06/15/05 


Christine A. King 


None 


215.95 


4247 


06/27/05 


Christine A. King 


Mileage June 78 miles 


29.25 


4261 


07/05/05 


Christine A. King 


FY 2005-2006 July Wages 


467.57 


4273 


07/19/05 


Christine A. King 


City workshop Mileage and dinner 


59.04 


4287 


07/21/05 


Christine A. King 


None 


467.57 


4288 


08/03/05 


Christine A. King 


Wages 


457.92 


4306 


08/10/05 


Christine A. King 


Mileage August 


50.22 


4307 


08/22/05 


Christine A. King 


None 


435.60 


4313 


09/02/05 


Christine A. King 


Wages 


467.31 


4337 


09/19/05 


Christine A. King 


lVrilpaffp to OpHfir RaniHs 


46.56 


4340 


09/20/05 


Christine A. King 


wages 


426.45 


4343 


10/03/05 


Christina A. King 


wages mileage 


530.00 


4501 


10/11/05 


Christina A. King 


Mileage ECIA meeting 


80.02 


4511 


10/19/05 


Christine A. King 


None 


72.46 


4512 


10/22/05 


Christine A. King 


None 


497.92 


4518 


11/15/05 


Christine A King 


None 


466.47 


4515 


12/05/05 


Christine A. King 


None 


221.30 


4555 


12/18/05 


Christine A. King 


Payroll and Dec. Mileage 


466.29 


4556 


12/28/05 


Christine A. King 


Dec. Mileage 


24.25 


Subtotal 








9,313.56 



26 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 


Check Date 


Payee 


Memo 


Amount 


4559 


01/04/06 


Christine A. King 


None 


467.29 


4586 


02/01/06 


Christine A. King 


None 


456.29 


4587 


02/06/06 


Christine A. King 


None 


28.48 


4599 


02/22/06 


Christine A. King 


None 


167.77 


4612 


03/15/06 


Christine A. King 


None 


476.29 


4619 


03/21/06 


Christine A. King 


None 


32.85 


4601 


04/01/06 


Christine A. King 


None 


456.29 


1159 A 


04/05/06 


Christine A. King 


None 


119.34 


4624 


04/05/06 


Christine A. king 


None 


331.60 


4632 


04/13/06 


Christine A. king 


None 


228.97 


4633 


04/19/06 


Christine A. king 


Mileage April 


32.04 


4634 


05/01/06 


Christine A King 


None 


527.57 


4653 


05/05/06 


Christine A. King 


None 


486.50 


4648 


05/08/06 


Christine A King 


None 


432.29 


4649 


05/17/06 


Christine A King 


None 


117.50 


4650 


05/23/06 


Christine A King 


None 


486.19 


4686 


07/14/06 


Christine A. King 


None 


456.47 


4697 


07/25/06 


Christine A. King 


Mileage June, July; Office Supplies 


208.89 


4695 


08/01/06 


Christine A. King 


None 


452.57 


4700 


08/21/06 


Christine A. King 


None 


546.47 


4710 


09/01/06 


Christine A. King 


None 


446.19 


4715 


09/11/06 


Christine A. King 


Mileage 


58.34 


4719 


09/11/06 


Christine A. King 


None 


446.19 


4730 


09/18/06 


Christine A. King 


Iowa League of Cities Conference 


605.72 


4731 


09/25/06 


Christine A. King 


Wages - Sept 


451.00 


4733 


10/02/06 


Christine A. King 


None 


412.29 


4738 


10/09/06 


Christine A. King 


None 


205.87 


4737 


10/23/06 


Christine A. King 


Wages mileage 


526.18 


4743 


10/25/06 


Christine A. King 


mileage clerk meeting dinner 


110.50 


4749 


11/01/06 


Christine King 


None 


427.57 


1172 A 


11/06/06 


Christine King 


None 


179.01 


4752 


11/10/06 


Christine King 


None 


253.96 



27 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 

Check 



Number 


Check Date 


Payee 


Memo 


Amount 


4762 


11/ 13/06 


Christine King 


None 


41 1.47 


4744 


11/24/06 


Christine King 


None 


412.29 


4776 


12/01/06 


Christine A. King 


None 


417.28 


4764 


12/04/06 


Christine A. King 


Dec 2006 wages /mileage 


507.67 


4785 


12/11/06 


Christine A. King 


None 


416.47 


4793 


12/19/06 


Christine A. King 


Wages Mileage 


546. 15 


Subtotal 








13,345.81 


4745 


01/01/07 


Christine King 


None 


437.57 


5061 


01/04/07 


Christine A. King 


None 


510.36 


4771 


01/05/07 


Chritine A. King 


Hudget 


496.85 


4798 


01/17/07 


Christine A. King 


None 


432.29 


4799 


01/22/07 


Christine A. King 


Mileage 


156.28 


4800 


01/26/07 


Christine A. King 


Jan Wages 


432.29 


4806 


02/05/07 


Christine A. King 


None 


486. 19 


4808 


02/07/07 


Christine A. King 


Mileage 


126.42 


4820 


c\r\ 1 i r\ l r\ >~7 

02/12/07 


Christine A. King 


None 


612.27 


4751 


03/01/07 


Christine A. King 


None 


485.00 


4826 


03/07/07 


Christine A. King 


None 


418.27 


4835 


03/12/07 


Christine A. King 


Supplies / Mileage 


275.31 


4836 


03/20/07 


Christine A. King 


Mileage - budget/ grant 


56.42 


4838 


03/21/07 


Christine A. King 


Wages 


376.52 


4841 


03/28/07 


Christine A. King 


None 


431.75 


4842 


04/01/07 


Christine A. King 


wages /mileage/ software updates 


859.42 


4868 


04/01/07 


Christine A. King 


None 


432.57 


4847 


04/09/07 


Christine A. King 


None 


275.00 


4860 


04/24/07 


Christine A. King 


None 


452.57 


4873 


05/07/07 


Christine A. King 


None 


375.26 


4894 


05/22/07 


Christine A. King 


None 


152.98 


4895 


05/23/07 


Christine A. King 


None 


447.29 


4902 


06/04/07 


Christine A. King 


None 


850.75 



28 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 



Number 


Check Date 


Payee 


Memo 


Amount 


4904 


06/13/07 


Christine A King 


None 


125.42 


4919 


06/18/07 


Christine A King 


None 


462.29 


4922 


06/ 26/07 


Christine A King 


yearend 


325.80 


4925 


07/01/07 


Christine A. King 


None 


457.29 


4928 


07/09/07 


Christine A. King 


Mileage 


96.53 




A7 /on /D7 


Christine A. King 


Mileage / Computer 


i 8n 

1 OU. JU 


4948 


07/25/07 


Christine A. King 


None 


487.29 


4977 


09/01/07 


Christine A. King 


wages 


406.63 


5000 


10/3/07 


Christine A King 


Wages 


486.48 


5012 


11/01/07 


Christine A King 


None 


487.31 


5013 


11/01/07 


Christine A King 


None 


123.00 


5015 


11/06/07 


Christine A King 


Sewer Stmt date 10/25/2007 Inv # 234 


65.27 


5014 


1 1/ 12/07 


Christine A King 


Mileage 


486.48 


5032 


1 1/ 19/07 


Christine A King 


budget/ annual report + hrs/ mileage 


584.05 


5034 


1 1 /28/07 


Christine A King 


None 


326.84 


5035 


12/04/07 


Christine A. King 


wages + mileage(budget meeting) + expense 


864.72 


5051 


12/18/07 


Christine A. King 


None 


479.63 


Subtotal 








16,025.16 


5063 


01/08/08 


Christine A. King 


Mileage - software updates 


384.53 


5070 


01/14/08 


Christine A. King 


None 


410.29 


5077 


01/22/08 


Christine A. King 


Meetings / Mileage 


289.63 


5086 


01/25/08 


Christine A. King 


None 


455.22 


5093 


02/06/08 


Christine A. King 


None 


466.47 


5096 


02/11/08 


Christine A. King 


Budget 


312.48 


5095 


02/23/08 


Christine A. King 


None 


492.36 


5115 


03/01/08 


Christine A. King 


wages 


467.83 


5117 


03/05/08 


Christine A. King 


Quickbooks 


692.00 


5124 


03/10/08 


Christine King 


Mileage 


52.41 


5132 


03/17/08 


Christine A. King 


Mileage 


84.62 


5157 


04/01/08 


Christine A. King 


None 


476.52 


5136 


04/03/08 


Christine A. King 


wages /mileage 


522.72 



29 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 


Check Date 


Payee 


Memo 


Amount 


5139 


04/09/08 


Christine A. King 


None 


319.82 


5153 


04/21/08 


Christine A. King 


Wages 


410.26 


5161 


05/07/08 


Christine A. King 


None 


340.67 


5168 


05/12/08 


Christine A. King 


None 


217.36 


5178 


05/27/08 


Christine A. King 


None 


275.36 


5181 


06/02/08 


Christine A. King 


None 


755.36 


5189 


06/11/08 


Christine A. King 


None 


486.32 


5202 


06/15/08 


Christine A. King 


me / pot / wage / mileage 


684.32 


5205 


07/08/08 


Christine A. King 


None 


481.82 


5222 


07/19/08 


Christine A. King 


None 


246.32 


5227 


07/24/08 


Christine A. King 


None 


76.52 


5231 


07/25/08 


Christine A. King 


None 


278.02 


5233 


08/05/08 


Christine A. King 


None 


785.26 


5240 


08/07/08 


Christine A. King 


None 


178.26 


5252 


08/16/08 


Christine King 


None 


510.63 


5255 


08/21/08 


Christine A. King 


None 


210.63 


5256 


08/23/08 


Christine A. King 


None 


190.40 


5253 


08/28/08 


Christine A. King 


None 


287.53 


J/JO 


net /m /ns 
uy / uo/ uo 


Christine A. King 


None 


oir no 
o 1 D.Ao 


DA 1 o 


uy / uo/ uo 


Christine A. King 


None 


101 Af 
LAi .H-D 


DA I i 


net / 1 o /na 
uy / la I uo 


Christine A. King 


None 


i An 

OD 1 .^A 


cn77 
DA I I 


no / i7/nc 

uy/ i / / uo 


Christine A. King 


Wages- year end reports 


C7Q OA 


5279 


09/24/08 


Christine King 


None 


98.64 


5280 


09/26/08 


Christine A. King 


None 


386.52 


5283 


10/01/08 


Christine A. King 


None 


763.95 


5285 


10/04/08 


Christine A. King 


Hotel. Meeting, Mileage (xxxx) 


659.42 


1302 A 


10/04/08 


Christine A. King 


meeting (red flags, mileage $96.45, office supplies 
$72.05, wages $142.10 


310.60 


5287 


10/13/08 


Christine King 


None 


248.65 


5297 


10/20/08 


Christine A. King 


None 


552.48 


5332 


10/26/08 


Christine A. King 


None 


245.62 


5303 


11/01/08 


Christine King 


None 


486.53 


5304 


11/05/08 


Christine King 


software / Mileage 


505.00 



30 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 



Number 


Check Date 


Payee 


Memo 


Amount 


5306 


11/10/08 


Christine A. King 


None 


575.62 


5319 


11/19/08 


Christine A. King 


Wages .Mileage / meeting 


375.42 


5326 


12/01/08 


Christine A. King 


Wages 


538.42 


5328 


12/03/08 


Christine A. King 


WK, Postage, mileage, meeting 


356.82 


5352 


12/10/08 


Christine A. King 


None 


87.43 


5330 


12/17/08 


Christine A. King 


None 


215.45 


5347 


12/24/08 


Christine A. Ling 


None 


334.55 


OUUlULcLl 










5354 


01/02/09 


Christine A. King 


None 


389.47 


5358 


01/06/09 


Christine A. King 


None 


346.31 


5359 


01/10/09 


Christine A. King 


Mileage 


82.00 


5369 


01/12/09 


Christine A. King 


None 


456.95 


5323 


01/19/09 


Christine A. King 


None 


389.42 


5373 


01/27/09 


Christine A. King 


Mileage / meeting 


165.42 


5375 


02/02/09 


Christine A. King 


None 


310.56 


5390 


02/09/09 


Christine King 


Sewer budget hrs 


180.00 


5393 


02/09/09 


Christine A. King 


wages/ budget hrs/ mileage 


675.42 


5382 


03/02/09 


Christine A. King 


None 


486.90 


5397 


03/11/09 


Christine A. King 


Mileage 


70.24 


5405 


03/23/09 


Christine A. King 


mppHnp milpapp nnstapp 

ii ii^i_ lii ig , uiiiuag^., uuo LagL 


165.67 


5407 


04/01/09 


Christine A. King 


wages 


476.47 


5410 


04/08/09 


Christine A. King 


None 


146.75 


5423 


04/20/09 


Christine A. King 


Mileage, meeting, reg fees 


92.56 


5428 


04/23/09 


Christine A. King 


None 


65.00 


5431 


04/27/09 


Christine A. King 


None 


471.47 


5447 


05/11/09 


Christine A. King 


April/ may 


535.46 


5384 


05/18/09 


Christine A King 


None 


396.53 


5449 


05/22/09 


Christine A King 


flowers/ mileage 


53.84 


5450 


06/01/09 


Christine A. King 


None 


565.82 


5466 


06/09/09 


Christine King 


None 


78.36 


5435 


06/15/09 


Christine A. King 


None 


197.43 



31 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 


Check Date 


Payee 


Memo 


Amount 


5479 


07/01/09 


Christine King 


None 


675.43 


5481 


07/08/09 


Christina A King 


candy, office supplies 


250.83 


5498 


07/17/09 


Christine A King 


None 


310.59 


5505 


07/25/09 


Christine A King 


rpt hrs 


385.46 


5508 


07/31/09 


Christine A. King 


DNR papers 


75.00 


5510 


08/03/09 


Christine A. King 


None 


679.48 


5517 


08/10/09 


Christine A. King 


Hotel 


389.64 


1323 A 


08/15/09 


Christine A. King 


sewer portion wages 2010 


425.36 


5525 


08/24/09 


Christine A. King 


None 


175.00 


5527 


09/01/09 


Christine A King 


None 


185.00 


5530 


09/01/09 


Christine A. King 


None 


625.42 


1326 A 


09/02/09 


Christine King 


None 


295.00 


5541 


09/14/09 


Christine A. King 


None 


368.79 


5555 


09/16/09 


Christine A. King 


Mileage / conf meeting/meals 


315.86 


5556 


09/19/09 


Christine A. King 


None 


56.92 


5557 


09/26/09 


Christine A. King 


Mileage 


215.08 


5559 


10/01/09 


Christine A King 


Mileage 


135.00 


5558 


10/01/09 


Christine A King 


None 


651.47 


5561 


10/07/09 


Christine A King 


Notary renewal 


30.00 


5577 


10/12/09 


Christine A King 


None 


235.90 


5581 


10/17/09 


Christine A King 


Office Supplies/ Mileage /candy 


325.09 


5582 


10/19/09 


Christine A King 


conference 


625.00 


5584 


10/28/09 


Christine A King 


Wage/ Mileage 


515.09 


5587 


11/02/09 


Christine A. King 


None 


565.42 


5406 


11/14/09 


Christine A. King 


None 


465.32 


5594 


11/14/09 


Christine A. King 


None 


425.00 


5604 


11/24/09 


Christine A. King 


None 


225.00 


5605 


12/02/09 


Christine A. King 


None 


315.00 


5606 


12/07/09 


Christine A. King 


None 


295.67 


5633 


12/14/09 


Christine A. King 


None 


285.46 



32 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 



Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 



Check Date 



Payee 



Memo 



Amount 



5602 
5603 

Subtotal 



12/22/09 Christine A. King None 
12/29/09 Christine A. King None 



275.46 
58.63 



17,655.42 



5599 


01/04/10 


Christine A. King 


None 


654.36 


1330 


A 01/09/10 


Christine King 


None 


335.40 


5644 


01/13/10 


Christine A. King 


None 


462.73 


5650 


02/02/10 


Christine A King 


None 


509.82 


5651 


02/08/10 


Christine A King 


None 


86.75 


5663 


02/08/10 


Christine A King 


None 


215.00 


5678 


02/18/10 


Christine A King 


cleaning supplies 


147.37 


5679 


03/02/10 


Christine A King 


None 


623.46 


5694 


03/12/10 


Christine A King 


office Supplies/mileage 


119.49 


5696 


03/17/10 


Christine A King 


None 


325.76 


5697 


03/23/10 


Christine A King 


None 


350.76 


5710 


04/01 / 1 




None 


615.25 


5708 


04/12/10 


Christine A King 


None 


182.46 


5725 


04/19/10 


Christine A King 


wages /mileage 


198.42 


5727 


04/26/10 


Christine A King 


None 


515.62 


5732 


05/12/10 


Christine A King 


None 


515.46 


5743 


06/02/10 


Christine A. King 


wages/ meeting/mileage 


725.00 


1337 


A 06/09/10 


Christine A. King 


sewer 2009/2010 hours Postcards + lables for bills 


461.75 


5757 


06/16/10 


Christine A King 


None 


515.46 


5763 


06/22/10 


Christine A King 


Meeting and mileage 


285.42 


5768 


07/07/10 


Christine A King 


None 


536.42 


5786 


07/17/10 


Christine A King 


wages mileage 


625.47 


5789 


07/26/10 


Christine A King 


IA leg cities annual meeting 


425.00 


5794 


08/04/10 


Christine A King 


wages 


486.25 


5795 


08/09/10 


Christine A King 


None 


142.65 


5819 


08/25/10 


Christine A King 


None 


86.42 


5793 


09/01/10 


Christine A King 


None 


652.00 


5831 


09/13/10 


Christine King 


None 


326.82 



33 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 



Number 


Check Date 


Payee 


Memo 


Amount 


5799 


10/01/10 


Christine A King 


None 


520.64 


5851 


10/20/10 


Christine King 


None 


626.42 


5852 


11/01/10 


Christine King 


None 


789.42 


1343 A 


11/03/10 


Christine A. King 


report hours 


200.00 


5855 


11/05/10 


Christine A King 


mileage + meals 


250.00 


5877 


11/18/10 


Christine A King 


None 


652.49 


5878 


12/01/10 


Christine A King 


None 


625.49 


5905 


12/13/10 


Christine A King 


None 


652.86 


OUULOLdl 








1 ^ AAA OQ 


5893 


01/05/11 


Christine A King 


None 


715.49 


1349 A 


01/10/11 


Christine King 


None 


750.00 


5885 


01/19/11 


Christine King 


xxxxx hrs/mtgs/mtg 


525.36 


5911 


01/24/11 


Christine A King 


None 


310.25 


5882 


02/03/11 


Christine King 


None 


775.36 


5859 


02/14/11 


Christine A King 


mileage 


123.45 


5860 


02/14/11 


Christine A King 


None 


486.25 


5919 


03/02/11 


Christine A King 


None 


725.36 


5917 


03/09/1 1 


Oh ri <3ti n p A K"incf 

V 111 lo L111U 1 1 IVlllCL 




275.36 


5924 


03/09/11 


Christine A King 


None 


563.82 


5918 


03/23/11 


Christine A King 


None 


535.66 


5922 


04/02/11 


Christine A King 


None 


675.83 


5923 


04/04/11 


Christine A King 


wage / meetings / mileage 


632.84 


1354 A 


04/06/11 


Christine A. King 


sewer system wages/ hrs 


675.00 


5958 


05/02/11 


Christine A King 


None 


625.36 


5957 


05/11/11 


Christine A King 


None 


296.43 


5966 


05/18/11 


Christine A King 


None 


684.92 


5920 


06/01/11 


Christine A King 


mileage 


75.84 


5921 


06/01/11 


Christine A King 


None 


632.51 


5973 


06/20/11 


Christine A King 


None 


675.83 



34 



Exhibit B 



Report on Special Investigation of the 
City of Masonville 

Checks Issued to Christine (Boudreau) King 
For the period March 18, 2002 through November 30, 201 1 



Per Check 



Check 
Number 


Check Date 


Payee 


Memo 


Amount 


5974 


06/21/11 


Christine A King 


None 


425.63 


5975 


07/19/11 


Christine A King 


None 


275.36 


6016 


07/26/11 


Christine A King 


clerk meeting food + mileage 


200.00 


6018 


08/01/11 


Christine A King 


None 


625.37 


6022 


08/08/11 


Christine A King 


mileage 


116.32 


6024 


08/16/11 


Christine A King 


None 


641.80 


6025 


08/22/11 


Christine A King 


None 


315.23 


6026 


08/27/11 


Christine A King 


None 


315.23 


6039 


09/01/11 


Christine A King 


None 


726.43 


6055 


09/12/11 


Christine A King 


mileage 


31.62 


6040 


09/17/11 


Christine A King 


None 


386.45 


6061 


09/26/11 


Christine King 


None 


335.00 


6065 


10/10/11 


Christine King 


none 


543.29 


6066 


10/02/11 


Christine King 


xxxxx, wages 


525.43 


6068 


10/04/11 


Christine A King 


none 


658.42 


Subtotal 








16,882.50 


Total 








$ 124,890.57 



A - Check issued from City's Sewer Fund checking account. All remaining checks were issued from the 
City's General Fund checking account. 



35 



Exhibit C 



Report on Special Investigation of the 
City of Masonville 

IPERS Contributions on Unauthorized Payroll 
For the period March 18, 2002 through November 30, 201 1 



Employer and 
Payro11 Employee IPERS 



Quarter/ 
Month Ended 


Reported to 
IPERS 


Authorized 


Unauthorized 


Contributions on 
Unauthorized Payroll 


09/30/02 


$ 1,200.00 


1,200.00 


_ 




12/31/02 


1,200.00 


1,200.00 


_ 




03/31/03 


1,200.00 


1,200.00 


_ 




06/30/03 


1,200.00 


1,200.00 


_ 




09/30/03 


1,200.00 


1,200.00 


_ 




12/31/03 


1,200.00 


1,200.00 






03/31/04 


1,200.00 


1,200.00 


_ 




06/30/04 


1,400.00 


1,200.00 


200.00 


18.90 


09/30/04 


1,200.00 


1,200.00 


_ 




12/31/04 


1,650.00 


1,200.00 


450.00 


42.53 


03/31/05 


1,650.00 


1,200.00 


450.00 


42.53 


06/30/05 


_ 


1,200.00 


(1,200.00) 


(113.40) 


09/30/05 


1,650.00 


1,200.00 


450.00 


42.53 


12/31/05 


2,200.00 


1,200.00 


1,000.00 


94.50 


03/31/06 


1,650.00 


1,200.00 


450.00 


42.53 


06/30/06 


2,600.00 


1,200.00 


1,400.00 


132.30 


09/30/06 


_ 


1,200.00 


(1,200.00) 


(113.40) 


12/31/06 


_ 


1,200.00 


(1,200.00) 


(113.40) 


03/31/07 


1,650.00 


1,200.00 


450.00 


42.53 


06/30/07 


3,650.00 


1,200.00 


2,450.00 


231.53 


09/30/07 


1,650.00 


1,200.00 


450.00 


44.78 


12/30/07 


2,250.00 


1,200.00 


1,050.00 


104.48 


03/31/08 


1,650.00 


1,200.00 


450.00 


44.78 


06/30/08 


1,650.00 


1,200.00 


450.00 


44.78 


07/31/08 


550.00 


550.00 






08/31/08 


550.00 


550.00 






09/30/08 


550.00 


550.00 






10/31/08 


550.00 


550.00 






11/30/08 


550.00 


550.00 






12/31/08 


550.00 


550.00 






01/31/09 


550.00 


550.00 






02/28/09 


550.00 


550.00 







36 



Exhibit C 



Report on Special Investigation of the 
City of Masonville 

IPERS Contributions on Unauthorized Payroll 
For the period March 18, 2002 through November 30, 201 1 



Employer and 

Payro11 Employee IPERS 

Quarter/ Reported to Contributions on 

Month Ended IPERS Authorized Unauthorized Unauthorized Payroll 



03/31/09 


550.00 


550.00 


- 


- 


04/30/09 


550.00 


550.00 


- 


- 


05/31/09 


550.00 


550.00 


- 


- 


06/30/09 


750.00 


550.00 


200.00 


20.90 


07/31/09 


750.00 


550.00 


200.00 


21.90 


08/31/09 


550.00 


550.00 


- 


- 


09/30/09 


550.00 


550.00 


- 


- 


10/31/09 


550.00 


550.00 


- 


- 


11/30/09 


550.00 


550.00 


- 


- 


12/31/09 


550.00 


550.00 


- 


- 


01/31/10 


550.00 


550.00 


- 


- 


02/28/10 


550.00 


550.00 


- 


- 


03/31/10 


550.00 


550.00 


- 


- 


04/30/10 


550.00 


550.00 


- 


- 


05/31/10 


550.00 


550.00 


- 


- 


06/30/10 


550.00 


550.00 


- 


- 


07/31/10 


550.00 


550.00 


- 


- 


08/31/10 


550.00 


550.00 






09/30/10 


550.00 


550.00 






10/31/10 


550.00 


550.00 






11/30/10 


550.00 


550.00 






12/31/10 


550.00 


550.00 






01/31/11 


550.00 


550.00 






02/28/11 


550.00 


550.00 






03/31/11 


550.00 


550.00 






04/30/11 


550.00 


550.00 






05/31/11 


550.00 


550.00 






06/30/11 


550.00 


550.00 






07/31/11 


550.00 


550.00 






08/31/11 


550.00 


550.00 






Total : 


£ 56,200.00 


49,700.00 


6,500.00 


631.30 



37 



Exhibit D 



Report on Special Investigation of the 
City of Masonville 

FICA Contributions on Unauthorized Payroll 
For the period March 18, 2002 through November 30, 201 1 

Payroll Employer and 

Employee FICA 



Quarter/ 
Month Ended 


Reported to 
IPERS 


Payroll 
Authorized 


Unauthorized 


Contributions 
Unauthorized Ps 


09/30/02 


1,200.00 


1,200.00 


- 


- 


12/31/02 


1,200.00 


1,200.00 


- 


- 


03/31/03 


1,200.00 


1,200.00 


- 


- 


06/30/03 


1,200.00 


1,200.00 


- 


- 


09/30/03 


1,200.00 


1,200.00 


- 


- 


12/31/03 


1,200.00 


1,200.00 


- 


- 


03/31/04 


1,200.00 


1,200.00 


- 


- 


06/30/04 


1,400.00 


1,200.00 


200.00 


30.60 


09/30/04 


1,200.00 


1,200.00 


- 


- 


12/31/04 


1,650.00 


1,200.00 


450.00 


68.85 


03/31/05 


1,650.00 


1,200.00 


450.00 


68.85 


06/30/05 


- 


1,200.00 


(1,200.00) 


(183.60) 


09/30/05 


1,650.00 


1,200.00 


450.00 


68.85 


12/31/05 


2,200.00 


1,200.00 


1,000.00 


153.00 


03/31/06 


1,650.00 


1,200.00 


450.00 


68.85 


06/30/06 


2,600.00 


1,200.00 


1,400.00 


214.20 


09/30/06 


- 


1,200.00 


(1,200.00) 


(183.60) 


12/31/06 


- 


1,200.00 


(1,200.00) 


(183.60) 


03/31/07 


1,650.00 


1,200.00 


450.00 


68.85 


06/30/07 


3,650.00 


1,200.00 


2,450.00 


374.85 


09/30/07 


1,650.00 


1,200.00 


450.00 


68.85 


12/30/07 


2,250.00 


1,200.00 


1,050.00 


160.65 


03/31/08 


1,650.00 


1,200.00 


450.00 


68.85 


06/30/08 


1,650.00 


1,200.00 


450.00 


68.85 


07/31/08 


550.00 


550.00 






08/31/08 


550.00 


550.00 






09/30/08 


550.00 


550.00 






10/31/08 


550.00 


550.00 






11/30/08 


550.00 


550.00 






12/31/08 


550.00 


550.00 






01/31/09 


550.00 


550.00 






02/28/09 


550.00 


550.00 






03/31/09 


550.00 


550.00 






04/30/09 


550.00 


550.00 







38 



Exhibit D 



Report on Special Investigation of the 
City of Masonville 

FICA Contributions on Unauthorized Payroll 
For the period March 18, 2002 through November 30, 201 1 







Payroll 




c/iupiuycr ctiiu 


Quarter/ 

1V1UI1 LIl I/UUCU 


Reported to 
IPERS 


Payroll 

A n I'll nri 7^>H 


U I let UU1UI l^CU 


Employee FICA 
Contributions on 
Unauthorized Payroll 


05/31/09 


550.00 


550.00 






A /- /OA / A A 

06/30/09 


750.00 


550.00 


a a a r\ r\ 

200.00 


30.60 


Af7 / o i / aa 

u / /oi/uy 


750.00 


550.00 


AAA r\r\ 

200.00 


30.60 


a / ^ i /a a 

08/31/09 


550.00 


550.00 






A A / a /aa 

09/30/09 


550.00 


550.00 






1 A / A 1 / A A 

10/31/09 


550.00 


550.00 






1 1/30/09 


550.00 


550.00 






1 A / O 1 / A A 

12/31/09 


550.00 


550.00 






01/31/10 


550.00 


550.00 






a a 1 a a i i a 

02/28/10 


550.00 


550.00 






03/31/10 


550.00 


550.00 






A A 1 A A 1 1 A 

04/30/10 


550.00 


550.00 






a r" / o i / i a 

05/31/ 10 


550.00 


550.00 






06/30/ 10 


550.00 


550.00 






A^V / O 1 / 1 A. 

07/31/10 


550.00 


550.00 






nri / o 1 / -I A 

08/31/ 10 


550.00 


550.00 






A A i f\ r\ / i a 

09/30/ 10 


550.00 


550.00 






10/31/ 10 


550.00 


550.00 






11/30/10 


550.00 


550.00 


- 


- 


12/31/10 


550.00 


550.00 






01/31/11 


550.00 


550.00 






02/28/11 


550.00 


550.00 






03/31/11 


550.00 


550.00 






04/30/11 


550.00 


550.00 






05/31/11 


550.00 


550.00 






06/30/11 


550.00 


550.00 






07/31/11 


550.00 


550.00 






08/31/11 


550.00 


550.00 






Total 


$ 56,200.00 


49,700.00 


6,500.00 


994.50 



39 



Report on Special Investigation of the 
City of Masonville 



Credit Card Purchases 





Tn^rit* \ h p Y\c*r~\c\(\ l\/TQT*r , h 1 & 

fUl L11C pCllUU lvldlL.ll 10, 


9009 thrrmc 


rh Nnvpmhpr "30 901 1 




Per Credit Card Statement 






i ransaciion 
Date 


Description 


Charges 


Description of Purchases per Mayor 


03/11/10 


Farm and Fleet/ Cedar Falls 


$ 189.00 


City shop supplies 


09/04/10 


Kwik Star 


52.50 


## 


uy / lo/ iu 


Interest 


u.oo 




09/26/10 


Late Fee 


10.00 




10/17/10 


Interest 


1.02 




11/15/10 


Interest 


0.77 




1 1 /30/ 1 


1-Tfi wIcpvp TViipIc T^.ni linmpn t 

llaWlVCyC 11 LA CIV l_jl_.l Ul |.J11 1C1 1 I. 


82.07 


Parts for (~Mtv trnelc 

1 al Lo 1U1 C1LJ Li UL,I\ 


12/16/10 


Interest 

111 IA_ 1 CO L 


0.52 




12/16/10 


Wal Mart #1528 


133.58 


Supplies for community holiday event for 
children 


01 / IS/1 1 


Oknhrvii Grill 

Wr\UUUI 1 V_J 1 111 


394.77 


Oonneil meal* 

CUU11L.11 111CCL1 


09 /07 /I 1 


^\enrQ Reorti ielf 


20.59 


Parts for <jnnw r*1o\x7er 

1 CLl Lo 1C1 ollU W U1UWC1 




Interest 

111 LCI Co L 


4.54 




09 /90/ 1 1 


lVTfirrintt \X/e«2t Oe<2 lMm'neQ 

IVldlllLJLL VVCoL L/Co IVIUlllCo 


56.00 


T oHtxincf eosts for eonferenee 

LAJClglllg LUoLb 1U1 CUlllcl cllCc. 


09 /99 / 1 1 


Or£>Hit \lt~\i 1 1~* Vi pr A A a rri ntt TX7p>ef~ T^^o A/Toin^o 
K^l cU.lL V (J Licllcl , IVlcil 1 1(J LL VVCbL JJC& lvl(JlIlCt> 




T nnninrr potinpllpn 
ijULtglliy callccllccl. 


05/28/11 


Home Depot 


122.18 


Authorized purchase for Fire Department. 

AHHitionnl information unknown 

rlULU L1C11CL1 1111W1 lllcl L1U11 Lll IxvllW W 11 * 


06/25/1 1 


Kwik Star 


67.51 


## 


07/14/11 


Iowa League of Cities 


145.00 


Authorized cost for conference. 


07/17/11 


Interest 


1.55 




08/17/11 


Interest 


2.76 




08/20/11 


Credit Voucher - Iowa League of Cities 


(145.00) 


Attendance at conference cancelled. 


09/25/11 


Elkader Fuel 


10.01 


Unauthorized purchase from an out of town 
vendor. 


Total 




$ 1,094.20 





## - Personal purchases which were not authorized. 



40 



Exhibit E 



Purchases 

Supported/ Interest and 

Reasonable Improper Late Fees 



189.00 



82.07 

133.58 

394.77 
20.59 

56.00 
(56.00) 
122.18 

145.00 
(145.00) 



52.50 



67.51 



10.01 



0.83 
10.00 
1.02 
0.77 

0.52 



4.54 



1.55 
2.76 



942.19 130.02 21.99 



41 



Report on Special Investigation of the 
City of Masonville 



Selected Disbursements 
For the period March 18, 2002 through November 30, 201 1 



Per Check Images 



Date 


Check 
Number 


Payee 


Memo 




Amount 


Ob/ 13/ V2, 


3382 


rosy Place floral is (jilt 


None 




38. 10 


08/24/02 


3472 


R Place 


clean up day lunch 




94.57 


10/04/02 


3497 


R Place 


clerk meeting 




41.30 


Ob/ 18/U4 


3923 


Posy Place Floral and Gift 


Inv #60 /338 




29.75 


08/28/04 


3986 


R Place 


Clean Upday Lunch 




50.29 


09/21/05 


4334 


Pizza Ranch 


Gift Card 




30.00 


04/28/07 


4862 


R Place 


None 




120.00 


05/29/07 


4897 


Posy Place Floral & Gift 


Inv#3 10588 




49.01 


07 / 23 / '07 


4947 


Best Buy 


None 




628.05 


08/09/07 


4955 


Best Buy 


None 




572.37 


09/10/07 


4986 


R Place 


City Cleanup - Storm 




125.40 


09/10/07 


4987 


R Place 


gift Certificates 




125.00 


nn / aq /rift 
uy / uo/ uo 






None 




1 1 7^ 


AO / A /I / A A 

02/04/09 


5388 


Bob Nelson 


Kaitlyn benefit 




305.00 


07/11/09 


5484 


Sams Club 


None 




143.37 


07/15/09 


5495 


Regional Medical Center 


Acct# 1302386-pur 




17.27 


12/14/09 


5614 


R Place 


None 




54.59 


12/14/09 


5616 


R Place 


Gift Certificate 




35.00 


12/19/09 


5634 


Jolene Kaiser 


None 




25.00 


07/07/10 


5766 


Sams Club 


None 




135.46 


07/07/10 


5767 


Sams Club 


None 




35.00 


08/14/10 


5811 


Posy Place Floral + Gift 


Inv #378343 




59.71 


11/17/10 


5866 


Posy Place Floral + Gift 


Inv #699003 




70.62 


Total 








$ 


2,796.61 



42 



Exhibit F 



Public 



1111 pru per 


TTn cunnnrf^H 


rurpuoc 






38.10 






94.57 






41.30 






29.75 






50.29 






30.00 






120.00 






49.01 




628.05 


. 




572.37 








125.40 


- 


- 


125.00 


- 


- 


11.75 






305.00 


143.37 






17.27 










54.59 






35.00 






25.00 


135.46 






35.00 










59.71 






70.62 


331.10 


1,200.42 


1,265.09 



43 



Exhibit G 



Report on Special Investigation of the 
City of Masonville 

Comparison of Reported Balances to Bank Balances 
For the period March 18, 2002 through November 30, 201 1 



June 2010 July 2010 August 2010 



Account 




Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


General 


$ 


75,526.09 


993.56 


74,532.53 


73,734.83 


3,403.59 


70,331.24 


43,900.99 


40,480.83 


3,420.16 


Sewer 




17,949.50 


26,132.08 


(8,182.58) 


18,375.79 


14,295.91 


4,079.88 


18,686.03 


7,345.90 


11,340.13 


RUT 




23,299.37 


50,534.99 


(27,235.62) 


4,505.93 


40,686.48 


(36,180.55) 


5,452.53 


9,099.50 


(3,646.97) 


Generator 




1.00 


1.00 




1.00 


1.00 




1.00 


1.00 




Total 


$ 


116,775.96 


77,661.63 


39,114.33 


96,617.55 


58,386.98 


38,230.57 


68,040.55 


56,927.23 


11,113.32 



September 2010 October 2010 November 2010 



Account 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


General 


34,308.50 


1,240.55 


33,067.95 


38,290.19 


1,416.15 


36,874.04 


44,776.44 


1,371.97 


43,404.47 


Sewer 


20,253.03 


2,206.71 


18,046.32 


20,374.23 


1,408.91 


18,965.32 


21,540.76 


9,677.11 


11,863.65 


RUT 


6,344.00 


6,372.46 


(28.46) 


7,002.91 


9,147.03 


(2,144.12) 


8,125.51 


10,048.85 


(1,923.34) 


Generator 


1.00 


1.00 




1.00 


1.00 




1.00 


1.00 




Total 


60,906.53 


9,820.72 


51,085.81 


65,668.33 


11,973.09 


53,695.24 


74,443.71 


21,098.93 


53,344.78 



December 2010 January 2011 February 2011 



Account 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


General 


42,773.10 


1,223.96 


41,549.14 


47,752.75 


2,030.98 


45,721.77 


46,825.43 


2,080.34 


44,745.09 


Sewer 


21,599.28 


9,223.63 


12,375.65 


20,989.69 


9,838.65 


11,151.04 


21,973.62 


8,109.94 


13,863.68 


RUT 


8,474.49 


8,620.16 


(145.67) 


8,349.64 


8,191.09 


158.55 


9,053.03 


11,411.16 


(2,358.13) 


Generator 


1.00 


1.00 




1.00 


1.00 




1.00 


1.00 




Total 


72,847.87 


19,068.75 


53,779.12 


77,093.08 


20,061.72 


57,031.36 


77,853.08 


21,602.44 


56,250.64 



44 



Exhibit G 



Report on Special Investigation of the 
City of Masonville 

Comparison of Reported Balances to Bank Balances 
For the period March 18, 2002 through November 30, 201 1 







March 2011 






April 2011 






May 2011 




Account 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


Reported 


Actual 


Difference 


General 


44,616.76 


1,126.06 


43,490.70 


44,801.11 


976.15 


43,824.96 


33,158.69 


1,413.56 


31,745.13 


Sewer 


22,442.15 


7,525.47 


14,916.68 


22,959.66 


5,718.01 


17,241.65 


23,499.01 


5,272.84 


18,226.17 


RUT 


10,090.00 


7,574.69 


2,515.31 


10,157.24 


22,091.44 


(11,934.20) 


11,031.54 


11,060.20 


(28.66) 


Generator 


1.00 


1.00 




1.00 


1.00 




1.00 


1.00 




Total 


77,149.91 


16,227.22 


60,922.69 


77,919.01 


28,786.60 


49,132.41 


67,690.24 


17,747.60 


49,942.64 






June 2011 
















Account 


Reported 


Actual 


Difference 














General 


28,140.98 


574.26 


27,566.72 














Sewer 


23,766.23 


575.71 


23,190.52 














RUT 


11,260.53 


3,075.15 


8,185.38 














Generator 


1.00 


1.00 
















Total 


63,168.74 


4,226.12 


58,942.62 















45 



Report on Special Investigation of the 
City of Masonville 



Staff 



This special investigation was performed by: 



Annette K. Campbell, CPA, Director 
Lara K. Van Wyk, Staff Auditor 



Tamera S. Kusian, CPA 
Deputy Auditor of State 



46